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» Education » Neco 2017 Book Keeping Obj And Theory Answers – June/July Expo

Neco 2017 Book Keeping Obj And Theory Answers – June/July Expo

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Education
Wednesday, 19 July 2017

NECO Book Keeping OBJ, THEORY/ESSAY Questions and Answer – June/July 2017 Expo Runz




1a)
Marketing can be defined as the action or business of promoting and selling products or services, including market research and advertising.

1bi)
A need is a consumer's desire for a product's orservice's specific benefit, whether that be functional or emotional. A want is the desire for products or services that are not necessary, but which consumers wish for.

1bii)
Wants are goods or services that are not necessary but that we desire or wish for.

1biii)
Demand can be defined as how many goods and services are bought at various prices during a certain period of time.


1biv)
A product is the item offered for sale. Aproduct can be a service or an item. It can be physical or in virtual or cyber form.

1bv)
An exchange is a marketplace in which securities, commodities, derivatives and other financial instruments are traded. 



2a)
Stock-taking or "inventory checking" is the physical verification of the quantities and condition of items held in an inventory or warehouse. This may be done to provide an audit of existing stock. ... The term "periodic" may refer to annual stock count.

2b)
i)Cooperative
ii)Sole proprietorship
iii)Corporation
iv)Limited Liability Company


2c)
Advantages of a sole proprietorship
1)Simplest and least expensive form of business to establish and to dissolve.
2)The owner is making all the decisions and controlling the whole operations.

Disadvantages of a sole proprietorship
1)The owner is responsible for all the obligations of the business.
2) It is difficult to raise capital: it can only use the owner’s personal saving and consumer loans.

Advantages of a partnership
1)It is relatively easy to form but considerable amount of time should be invested in developing the partnership agreement.
2) It is easier to raise capital compared to a sole proprietorship as there are more than one investor.

Disadvantages of a partnership
1)Partners are jointly responsible for all the obligations of the business.
2) Partners must make decision together therefore disputes or conflicts may occur. It may eventually lead to dissolving the partnership.

Advantages of a corporation
1)It can raise additional funds through the sale of stock.
2)Shareholders can easily transfer the ownership by selling their stock.

Disadvantages of a corporation
1) It is restricted by more regulations, more closely monitored by governmental agencies and are more costly to incorporate than other forms of the organizations.
2) Profit of the business is taxed by the corporate tax rate. Dividends paid to shareholders are not deductible from corporate income, so this part of income is taxed twice as the shareholders must declare dividends as their personal income and pay personal income taxes too.



4 a )
journal is a detailed account that records all the financial transactions of a business , so that they can then be used for future reconciling and transfer to other official accounting records, such as the general ledger .
4 b )
1 . Purchase journal
2 . Sales journal
3 . Cash receipts journal
4 . Cash payment / disbursement journal
4 c )
1 
) For the correction of errors .

2 ) It records all other transactions.
3 ) to record the assets , liabilities and equity


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Neco 2017 Book Keeping Obj And Theory Answers – June/July Expo Title : Neco 2017 Book Keeping Obj And Theory Answers – June/July Expo
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